Prepare the journal entries to record the exchange of russ, Ask an Expert

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On june 30, 2011, Russ Company exchanged an old painting equipment and $19,200 for new painting equipment. The old equipment was purchased on january 1, 2009, for $67,200 and was estimated to have a $9,600 salvage value at the end of its 5 years life. Depreciation on the equipment has been recorded through december 31, 2010. It is estimated that the fair market value of the old painting equipment is $ 28,800 on may 31, 2011.

Instructions:

Prepare the journal entries to record the exchange of russ company painting equipment which has a calendar year end and uses the straight-line method of depreciation. Make sure to include the journal entries for the depreciation for the current year.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M973994

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